Hochschild Announces H1 Fall in Revenue, but Silver Production Strong

Hochschild Mining plc (LSE:HOC) announced its interim results for the first half of 2014, commenting that its revenue came to $282 million, down from $308.6 million in the year-ago period.

The company also achieved attributable production of 11.9 million silver equivalent ounces.

Further financial highlights include:

  • Adjusted EBITDA of $94.3 million (H1 2013: $90.4 million)
  • Profit before net finance income, FX and tax of $25.7 million (H1 2013: $1.2 million)
  • Profit before tax of $9.1 million (H1 2013: $(10.3 million))
  • EPS of $(0.01) (H1 2013: $(0.10))
  • Cashflow optimisation programme exceeding expectations – approx. $270 million of savings achieved:
    • Production costs reduced by $94 million versus initial 2013 guidance
    • Administration costs reduced by $34 million versus 2012
    • Sustaining capital expenditure reduced by $67 million versus initial 2013 guidance
    • Exploration costs reduced by $53 million versus initial 2013 guidance
  • Main operation all-in sustaining costs lowered by 16% to $16.8 per ounce (H1 2013: $19.9)
  • Cash balance of $225.6 million as at 30 June 2014
  • Term sheet signed for $100 million medium term credit facility

Click here to read the full Hochschild Mining plc (LSE:HOC) press release.